The arrival of a Norwegian-UK data centre gives a boost to Kitee

The arrival of a Norwegian-UK data centre gives a boost to Kitee

PRESS RELEASE Oct. 8, 2025

A Norwegian-UK developer and operator of AI data centers, Scale42 intends to develop a new AI data centre on Kitee site, diversifying the local economy.  The City of Kitee will sign a Preliminary Real Estate Sale and Purchase Agreement with Scale42 for a 10 hectares plot of land located in the industrial area north of Puhos in Kitee. The matter will be addressed at the city council meeting on October 13th 2025.

The project aims to enter into it’s Ready-to-Build phase in 2026 with construction on the project commencing later in the year, with the data centre being operational in 2027-28.

Located in Kitee's Puhos industrial district, the project will bring a range of new high-skilled jobs to the area during construction and operations with an expected 50-100 permanent roles being created.

The proposed facility would draw power from Finland's national grid, which has one of Europe's cleanest, largely fossil-free electricity mixes. By providing AI capacity in Kitee, Scale42 can serve the European market with a smaller carbon footprint vs alternative services located in regions with a lower renewable energy mix. The design will prioritise energy efficiency, grid friendliness and explore local heat-re-use opportunities.

The rapidly increasing demand for digital processing, driven by AI, creates an opportunity for communities with excess electrical supply to benefit economically and deliver a range of future-proof jobs. Scale42 and the City of Kitee envision that the project will create a range of new career paths that allow young people to stay within, or return to the area.

William Tasney, CEO of Scale42 said:

"From our first conversations, Kitee has felt like a true partner, practical, welcoming and forward looking. Kitee is a place with deep industrial roots and pride. We want to help be a part of its next chapter, diversifying into the digital economy and creating high-skilled digital career paths that allow the next generation to build their future in the local area. Finland's exceptionally clean and reliable electricity makes Kitee one of the best locations in Europe to responsibly deploy the latest AI hardware. We're grateful to the municipality and community for their support as we embark on this exciting project together."

Pekka Hirvonen, Mayor of Kitee said:

“It has been a pleasure to discuss the possibility of establishing a data center in Kitee with the representatives from Scale42. We are particularly impressed by the way the team at Scale42 takes into account conditions and the needs of the community. From an economic perspective, this project offers a huge boost to our region through the creation of new jobs. New company and employment strengthen the local community's confidence in the future. The development of the Puhos industrial area and the Port of Puhos are key strategic priorities in Kitee. Puhos is of course an excellent location for other new companies to establish themselves.  Scale42's data center fits perfectly into this area.  Special thanks to Pauliina Pikkujämsä from Business Joensuu for her assistance and professional coordination throughout the negotiation process.”

Pauliina Pikkujämsä, Director at Business Joensuu said:

“This project marks an exciting milestone as the first industrial-scale data centre development in North Karelia region. Business Joensuu is proud to work alongside the City of Kitee and Scale42 to ensure the benefits from new expertise, innovation, and long-term growth. We invite also other companies to discover the unique opportunities for sustainable future investments.”

For more information please contact:

William Tasney, CEO, Scale42
https://www.scale-42.com/

Pekka Hirvonen, Mayor, City of Kitee
pekka.hirvonen@kitee.fi
tel. 040 1051001

About Scale42

Scale-42, is a Norwegian-UK data centre developer and operator led by the founders of Hydrokraft (now Nscale, one of Europe’s largest hyperscalers), brings extensive expertise in data centre development, with a proven track record spanning over a decade; and a pipeline of data centres across the Nordics.

About the City of Kitee
Kitee is serving as the economic hub of the Central Karelia region. Its diverse business base spans forest and metal industries, clean technology, and tourism. The Puhos Industrial Park development highlights include sustainable industry growth, new infrastructure projects, and rising interest in renewable solutions. With a skilled workforce and a business-friendly environment, Kitee combines entrepreneurial energy with the natural strengths of Eastern Finland.

Caption: Data center will be located at Puhos industrial area, that is already a home to 20 companies.